Odd Lots
The Multi-Family Problems at New York Community Bancorp
Another community bank runs into trouble.
Contractors repair the exterior of an apartment building in New York, US.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Shares of New York Community Bancorp have plunged over 56% since Jan. 31, when the lender revealed a much larger provision for credit losses than expected.
Analysts had been looking for the bank to set aside $45 million to cover bad loans. Instead, NYCB said it was putting aside $552 million, with the increased provisions “primarily attributable to higher net charge-offs, as well as, to address weakness in the office sector, potential repricing risk in the multi-family portfolio, and an increase in classified assets.”